The Bank of England is ready to raise interest rates today — it could be an ‘unnecessary risk’

The Bank of England is set to hike interest rates for just the second time since the financial crisis later on Thursday. Britain’s central bank is expected to raise rates from 0.5% to 0.75%, taking the UK’s base rate of interest to its highest level since March 2009. Markets are pricing a more than 90% chance of a hike but UBS strategist John Wraith says a hike on Thursday is an “unnecessary risk.” LONDON – At lunchtime today, the Bank of England looks set to raise interest rates for just the second time since the financial crisis. If financial market expectations are met, Britain’s central bank should raise rates from 0.5% to 0.75%, taking the UK’s base rate of interest to its highest level since March 2009. Markets are pricing a more than 90% chance of a hike, according to the latest data. The rate hike is set to be one of the most divisive decisions in recent bank history, with opinions split on whether or not increasing borrowing costs will be a good idea going forward. Governor Mark Carney and the other eight members of the bank’s rate setting Monetary Policy Committee have been signalling that a hike is likely to come at some point in 2018 since their last hike in November last year, and Thursday looks like the day it will happen. Many had expected a hike in May, but weaker than expected data stopped the committee from doing so. Now, however, the time – if not… [Read full story]